Bank of America Rejected AIG's Request to Revise Pact

Bank of America Corp. spurned a request from American International Group Inc. to renegotiate an $8.5 billion deal over soured mortgage-backed securities after a judge suggested mediation, according to a court filing by AIG.

New York state Judge Barbara Kapnick said in a June 14 private meeting, according to a letter filed with the court by AIG, that the parties should consider mediation as a way to solve a long-running dispute over the fairness of a 2011 pact between Bank of America and a trustee for investors who suffered...